- The Company had revenues of $2,202,329 compared to $1,695,387 for the first quarter ended March 31, 2005. This increase of 30% is a result of both organic growth in the domestic market and a sharp increase in US consulting business.

- Consulting fee revenues increased 30% or $431,303 to $1.85 million in the second quarter from $1.42 million in the first quarter of 2005. Margins on consulting income also increased in the second quarter from 39% for the three-month period ended March 31, 2005 to 52.2% for the three-month period ended June 30, 2005.

- Revenues from the Company's pharmaceutical manufacturing subsidiary, Keata, increased 28% in the second quarter to $344,835 from $269,467 in the first quarter of 2005. Margins on the Keata business also increased from 28% for the three-month period ended March 31, 2005 to 44% for the three-month period ended June 30, 2005.

- The Company reported a net loss after taxes for the quarter of $(250,952) or $(0.007) per share.

"The quarter was our first full reporting period since going public in April 2005. We are pleased with these results as we continue to grow both our consulting and contract manufacturing business," commented Alan Kwong, CEO and Chairman of PharmEng. "As part of our ongoing business strategy, we are continuing to build our manufacturing and international consulting operations."

The following financial highlights for the quarter June 30, 2005 indicate that while the consulting business continues to be profitable, losses are a result of the ramping up of the Keata operation.

- Successful closing in August 2005 of $1. 0 million private placement

- Building of management team continued; and

- Signed a government financing package, previously announced, for Cape Breton manufacturing facility for $6.75 M with an additional $3.6 M of payroll rebates

About PharmEng International Inc.

PharmEng International Inc., headquartered in Toronto, Canada, is a full-service consulting and contract manufacturing company that serves the pharmaceutical and biotechnology industries in North America and internationally. Consulting services include project management, engineering, GMP, validation, calibration, regulatory compliance and certified training. Contract manufacturing includes pharmaceutical support, formulation development, laboratory testing, and finished solid dosage and liquid products. Building on a foundation of over seven years of successful consulting, PharmEng in combination with its wholly owned manufacturing subsidiary, Keata, has evolved into one of Canada's leading pharmaceutical companies.

PharmEng's shares trade on the TSX Venture Exchange under the symbol PII. For more information about PharmEng, please visit the Company's website at www.pharmeng.com.

FORWARD-LOOKING STATEMENTS

Certain statements in this press release may include "forward-looking" statements which involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements of PharmEng to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used in this press release, such statements use such words as "may", "will", "expect", "anticipate", "project", "believe", "plan", and other similar terminology. The risks and uncertainties are detailed from time to time in reports filed by PharmEng with the securities regulatory authorities in all of the provinces and territories of Canada. New risk factors may arise from time to time and it is not possible for management to predict all of those risk factors or the extent to which any factor or combination of factors may cause actual results, performance and achievements of PharmEng to be materially different from those contained in forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction actual results.